Merrill Combines Business Units

Financial News, October 12, 2003 | Go to article overview

Merrill Combines Business Units


Byline: Shanny Basar

While rival investment banks have combined their debt and equity capital markets teams, Merrill Lynch has taken a different tack and wants to more closely align its origination business across all financial products.It has formed a global capital markets and financing group by separating debt and equity capital markets from sales and trading and combining them with corporate finance. This excludes the relationship bankers who in Europe report to Philip Yates, head of European investment banking.

Jeff Edwards, former global co-head of equity capital markets (ECM), is in charge of the new group while his former co-head, Dante Roscini, is the head of capital markets and financing for Europe, the Middle East and Africa (Emea) and chairman of global ECM. Roscini stresses that Merrill intends to keep separate product expertise and does not aim to physically seat the teams together but to co-ordinate their activities and manage the origination business from one budget. He says: "We are not going to dismantle the product groups and jam them together, as DCM and ECM need to keep their proximity to sales and trading."

Last year, Merrill combined its corporate broking team into ECM and Roscini hopes the new group will replicate the success of this integration on a broader scale across Europe. He says: "Creating a link between ECM and corporate broking has improved our delivery mechanism and we have led more convertible bonds for our broking clients than any other broking firm."

In the UK Merrill is corporate broker to 31 FTSE 100 clients, eight of which it has added this year. The bank used to have three heads of corporate broking but only Rupert Hume Kendall remains after Stephen Robinson left the bank in May. Hume Kendall says: "The proximity of ECM and corporate broking works well and is evidence of the integration that we have worked on together in the past."

In the equity-linked market, Merrill has led deals this year for broking clients such as 3i, the UK-listed private equity firm, LogicaCMG, the merged Anglo-Dutch technology and mobile telecoms consultancy and Carnival Corporation, the US-UK listed cruise group. In the equity market the bank led an accelerated bookbuild for WPP Group, the UK advertising company, and the [pounds sterling]1.3bn ([euro]1.8bn) initial public offering (IPO) of Yell, the UK directories business, with Goldman Sachs. Hume Kendall says: "We have changed the way investors look at IPOs. We identify the critical investors for each deal and communicate with them early and actively. The results we have enjoyed have endorsed this activity and helped the IPO market to reopen."

Before launching the Yell offer, 15 investors said they were happy to buy enough stock to cover the book. A month earlier, Merrill had visited investors to discuss the [pounds sterling]181m IPO of Benfield Group, the UK reinsurance broker, in a deal it jointly led with Morgan Stanley. Hume Kendall says: "In the Benfield deal we visited the top potential UK buyers of the stock and asked them if they were open to IPO ideas and all of them came through."

The deals give Merrill a European ranking of ninth in European ECM this year, according to Dealogic, the investment banking research firm. This compares with a rank of eighth last year against first in 2001. Roscini says: "The race is not over until it is over. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Merrill Combines Business Units
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.